Shein reported a $99 million loss for Q1 2025 after the US lifted the de‑minimis tariff exemption, while the fast‑fashion giant readies for a Hong Kong IPO. The loss follows heightened US‑China trade tensions and geopolitical headwinds.

Key Takeaways

  • US tariff exemption removal triggers US sales decline
  • Quarterly loss of $99 M versus $395 M profit a year earlier
  • IPO preparations in Hong Kong continue despite setbacks

Quarterly Results

Shein disclosed that it incurred a net loss of $99 million (≈ £74.1 million) in the first quarter of 2025, a stark reversal from a $395 million profit recorded in the same period last year. The downturn is largely attributed to the recent US tariff policy shift and reduced demand linked to the Iran conflict.

Tariff Policy Change

President Donald Trump signed an executive order ending the de‑minimis exemption that allowed packages valued at $800 or less to enter the United States duty‑free. The new rule, effective 29 August 2025, now subjects all low‑value imports to tariffs, directly hitting Shein’s low‑price business model.

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Impact on the US Market

In response, Shein announced it is evaluating a range of options, including raising prices for US customers to offset higher duties and taxes. The company also cited the Iran war as a factor that dampened demand and delayed deliveries in several markets.

Historical Background

Founded in China and now headquartered in Singapore, Shein has pursued a public‑market debut for years. After failed attempts in New York and London, the China Securities Regulatory Commission approved a Hong Kong share sale on 10 July, paving the way for an IPO in the coming months.

YearNet Profit/Loss (USD)
Q1 2024+$395 M
Q1 2025-$99 M

Why This Matters

BozokMedia analysis shows that such abrupt tariff policy shifts can reshape the global e‑commerce ecosystem, as low‑value imports become significantly more expensive, pressuring fast‑fashion players to adjust pricing or absorb costs.

"The removal of the de‑minimis exemption could reshape global e‑commerce pricing," said Dr. Anita Rao, trade economist.
Did You Know?: The de‑minimis exemption, in place since 2016, let US consumers import goods up to $800 without tariffs, fueling the rise of platforms like Shein and Temu.

Frequently Asked Questions

  • What is the de‑minimis exemption? It is a tariff‑free threshold for low‑value imports; its removal now subjects all such shipments to duties.
  • When is Shein expected to list in Hong Kong? The company has not disclosed a precise date, but the listing is anticipated within the next few months.